Article on Yahoo Finance

[WellManicuredMan]

I believe what this article says about taxes and a Roth IRA is wrong.

http://biz.yahoo.com/cnnm/061115/111506_toptips.html

Here is the quote from the Roth IRA part:

If you have a traditional IRA or a 401(k), there's no reason to panic since these investment vehicles are tax-deferred. But if you have a Roth IRA or mutual fund holdings outside your 401(k) or IRA, you may be in for a shock.

Comments?

[poundwise]

Re: Article on Yahoo Finance


That article is confusing. I'm not sure what the author meant by some of her statements, including the one you have posted.

[poundwise]

Re: Article on Yahoo Finance


You are correct; it is wrong.

This article... USA Today: Mutual fund distributions bring a taxing time for some ...addresses the exact same issue and states:

"If you invest in a tax-deferred retirement account, or in a Roth IRA, you don't have to worry about taxable distributions."

[poundwise]

Re: Article on Yahoo Finance


Also, consider the following...

"IRA ACCOUNTS—TRADITIONAL IRA (Including SEP-IRAs), ROTH IRA

I. Dividends and Distributions from the Funds:

When the Fund pays income dividends or capital gain distributions in my IRA account, are those amounts taxable?

No. Income dividends and capital gain distributions are not taxable as long as those assets remain in your IRA."

From: Dodge & Cox Funds - Tax FAQ

[WellManicuredMan]

Re: Article on Yahoo Finance

It makes me laugh when blatant mistakes like this are made by "professionals". I read it and thought "huh???" immediately.

Unfortunately, some people will probably read that and think it is true.

[poundwise]

Re: Article on Yahoo Finance

It makes me laugh when blatant mistakes like this are made by "professionals". I read it and thought "huh???" immediately.

Yes. I read it a few times thinking that I must be missing something, however, it appears to me that the author is simply incorrect.

[sweeps]

Re: Article on Yahoo Finance

Good catch, WMM.

[Broken Arrow]

Re: Article on Yahoo Finance

I dunno... I've been somewhat disappointed with Yahoo's Finance section in general.

For example, they publish Robert Kiyosaki's articles regularly... which is OK, except that he advocates speculating in precious metals. I don't agree with that.

In another example, I remember simultaneously reading Ben Stein being for annuities, while Suze Orman was against.

To me, the whole thing just comes across as though it's more sensational editorial, manned by well-known "celebrities" more than anything. But that could just be me.

While Yahoo Finance is not without its gems, I generally don't read them anymore.